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Note

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>MicroStrategy is planning to raise $500 million through a convertible senior note offering to buy more bitcoin. </li> 
 <li>The company also declared the redemption of its 2025 convertible senior notes worth $650 million. </li> 
</ul>  
<p>MicroStrategy, a corporate holder of <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/">bitcoin</a> and a business intelligence company, has announced its intentions to raise $500 million. This will be done through a convertible senior note offering, with the option of an additional $75 million. </p> 
<h2 id="intended-use-of-funds">Intended Use of Funds</h2> 
<p>The notes, which are due in 2032, will be issued privately to qualified institutional investors. They are unsecured, bear interest semi-annually, and can be converted into cash, MicroStrategy class A common stock, or both. </p> 
<p>The company plans to use the raised funds to purchase more bitcoin and for other corporate purposes. </p> 
<p>The convertible notes offer MicroStrategy a way to manage its debt while potentially benefiting from equity appreciation. The company has been investing heavily in bitcoin since 2020, using debt financing to expand its bitcoin holdings. </p> 
<h2 id="past-acquisitions-and-future-plans">Past Acquisitions and Future Plans</h2> 
<p>MicroStrategy had previously proposed a $600 million convertible note offering in March, following a surge in its share price. The company then bought an additional 9,245 BTC that month for $623 million in cash. </p> 
<p>After two smaller acquisitions in March and April, the company now holds 214,400 BTC, costing a total of $7.54 billion, or $35,180 per bitcoin. The current value of MicroStrategy’s bitcoin holdings is $14.5 billion. </p> 
<p>In a separate statement, MicroStrategy also announced the redemption of $650 million worth of its 2025 convertible senior notes. The redemption will be completed on July 15 at 100% of the principal amount plus accrued interest. </p> 
<p>Holders of these notes can convert them into MicroStrategy shares at a rate of 2.5126 shares per $1,000 principal amount, reflecting a conversion price of $397.99 per share. The company will settle these conversions entirely in shares of its class A common stock. </p> 
<p>This move was part of MicroStrategy’s strategy to acquire bitcoin and adopt the cryptocurrency as its primary reserve asset, which began in December 2020 when it issued $650 million of 0.75% convertible senior notes due in 2025. </p>

MicroStrategy Plans $500M Convertible Note Sale to Boost Bitcoin Portfolio

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